Auto Sales In June 2020: Maruti Suzuki Sales Decline 54% To 57,428 Units
Indian automakers are reporting their sales data for June today, amid supply-chain constraints emerging out of the recent India-China border conflict and lingering effects of a lockdown.
Factory-gate shipments of passenger cars, two-wheelers and commercial vehicles fell in the range of 6%-79% year-on-year in June, data compiled from the reports of three brokerages—Nomura, Emkay Global and Motilal Oswal—showed. There, however, was a significant uptick compared to the previous month on improving rural demand and preference for personal vehicles amid the pandemic.
That improving rural sentiment is likely to reflect in tractor sales that likely normalised to pre-pandemic levels in June, analysts said. Rural India also led the recovery in car and two-wheeler sales, as urban demand remained muted.
Here’s a look the auto sales in June 2020 (company data):
Toyota Sales More Than Double Month-on-Month In June
Sales of Toyota Kirloskar India Pvt. Ltd. more than doubled month-on-month to 3,866 units in June 2020 on easing lockdown restrictions, the carmaker said in a statement Wednesday.
On year-on-year basis, Toyota's India sales slumped 66% from 11,407 units sold in June 2019.
According to the Fortuner maker, its inventory cost at dealerships has declined 50% compared to a year ago, thereby making the dealer operations more efficient. Most Toyota dealers were able to offload stock held over from May.
The carmaker is also witnessing customer interest shifting towards its entry-level portfolio of cars. "We are monitoring such trends and adjusting our future production according to market demand," Naveen Soni, senior vice president (sales and services) at Toyota Kirloskar Motor, said in the statement.
The company has two manufacuring facilities in India—both at Bidadi in Karnataka.
MG Motor India Sells 2,012 Units In June
MG Motor India Pvt. Ltd. sold 2,012 units in June amid supply-chain constraints.
The Indian arm of the British marquee company, a subsidiary of China's SAIC Motor Corp. Ltd., sold 1,867 units of the MG Hector SUV and 145 units of the MG ZS EV in the month gone by.
"Even though our sales performance in June 2020 was better than May this year, we continue to face headwinds in supply chain and logistics due to multiple issues," Rakesh Sardana, director-sales at MG Motor India, said in a statement. "Our teams are doing their best to overcome these challenges and we are looking forward to the launch of the Hector Plus in July.”
The company currently sells into two models in India—the MG Hector and MG ZS EV.
Maruti Suzuki Car Sales Slump 54% Year-On-Year In May
Sales of Maruti Suzuki India Ltd. fell 54% year-on-year to 57,428 units in June, the nation's largest carmaker said in an exchange filing on Wednesday. The company had sold 124,708 units in the year-ago period.
- Domestic sales down 53.7% to 53,139 units
- Exports down 56.4% to 4,289 units
- Mid-sized car sales down 76.2% to 563 units
- LCV sales down 49.1% to 1,026 units
Auto sales during the June quarter of 2020-21 should be seen in the context of the ongoing pandemic and lockdown restrictions, Maruti Suzuki said in the statement.
Escorts' Tractor Sales Rise 21.1% To 10,851 Units In June
Escorts Ltd.’s tractor sales rose 21.1% year-on-year to 10,851 units in June, the farm equipment maker said in an exchange filing on Wednesday. While domestic sales increased 22.8% to 10,623 units, exports fell 26.9% to 228 units.
“We have seen unprecedented demand in this month... Our inventory levels, both with the company and with channel have been lowest ever,” the company said. “After necessary permissions, we were able to run our factories in multiple shifts to achieve production at about 90% of the capacity. Supply chain situation, though better than before, continues to remain volatile.”
Escorts now expects the tractor industry to grow significantly, backed by pent-up demand due to the lockdown and improving rural sentiment.